Fortress Paper Ltd. (British Columbia, Canada) announced this week that the Fortress Specialty Cellulose Mill (the "FSC Mill") restarted on October 6 three days earlier than previously announced in the originally reported news release. The Company has completed the necessary repairs at the FSC Mill caused by the failure of a pressurized auxiliary gas collection system and has re-commenced production of dissolving pulp.

Giovanni Iadeluca, president of the FSC Mill, commented: "We wish to thank our team at the FSC Mill for their tireless efforts in resolving the system failure and achieving a restart three days earlier than originally anticipated. The FSC Mill restarted the normal ramp up of its operations starting on October 6 the production and cogeneration facility are now operating in ordinary course."

The Company has initiated an insurance claim pursuant to its property damage and business interruption insurance coverage, which has a $2.5 million deductible. Based on current information, the Company is confident that costs associated with the replacement and repair of damaged equipment and business interruption costs should be covered by the insurance claim.